Fast Fact: If Congress repeals Section 1031 of the Tax Code, our country could lose as much as $120 billion in economic growth in the next 10 years.
Even if you never use Section 1031 of the Tax Code, it can impact you — in a positive way.
This The 1031 Like-Kind Exchange is a tax deferral that helps individuals save for retirement and businesses reinvest and grow, creating jobs and economic expansion for all of us —which in turn creates additional tax revenue.
What, Exactly, Is the 1031 Like-Kind Exchange?
Section 1031 of the U.S. Tax Code lets those who reinvest proceeds from the sale of a non-homestead properties in similar (‘like-kind’) properties defer paying tax on the profit. It’s often referred to as the 1031 Like-Kind Exchange. And it’s been helping our economy grow since 1921.
So why would any member of Congress want to reduce or even eliminate the 1031 Like-Kind Exchange?
Sure the government could collect an estimated $40 billion in taxes over a ten-year period by repealing Section 1031. But the flip side is that it would cost our economy over three times that much in lost growth. And we need that growth now more than ever.
Tell Congress ‘hands off’ the 1031 Like-Kind Exchange!